TransferWise Has Granted Access to BoE RTGS Payment System

BoE (The Bank of England) is very strict in its regulations of allowing the only UK licensed banking institutions for real-time payment systems. But recently, it has changed its stance by granting access to TransferWise where a non-banking institution was given access to UK payment systems.

The company does not believe in charging “hidden fees” from its customers and clients and is highly motivated in bringing a new set of financial transactions for its people.

TransferWise is backed and supported by strong names like PayPal co-founder Max Levchin and UK’s Billionaire Sir Richard Branson. So, all UK based banks would be facing stiff competition because now customers would have the option to process their transactions through TransferWise and do not depend upon banks for their payments.

TransferWise

TransferWise would now have full access to RTGS (Real Time Gross Settlement) system and will work on getting rid of loopholes from the current banking system. It is likely that the company would be processing overseas transactions to the tune of 1.5 billion Pounds on a monthly basis.

But last week, Carney had a visional change and said that access to real-time payment would increase competition and help in reinforcing the financial stability of UK market. Founders of TransferWise Taavet Hinrikus and Kristo Käärmann are elated as the company has been given access to RTGS and they think it would be a game changer for them.

Kristo Käärmann made the following statement:

The Bank of England is giving tech companies the same rights to process payments as the retail banks – enabling us to cut out the middlemen and offer people a faster, cheaper service. Other central banks should be looking to follow the UK’s example.

Craig Tillotson who is in-charge of the Faster Payment Systems in the United Kingdom said that now TransferWise can access real-time payments and it would pose a huge challenge to the top-rated banking institutions in the country.

Steven Rudford

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